Mumbai-based textile company Siyaram Silk Mills (SSM) will soon retail deodorants and perfumes with its textile brand. The company plans to use its network of franchise-owned stores to enter the FMCG segment.
“Since our existing 100 shops are already stocking accessories, we have thought of introducing deodorants and perfumes in the same segment within the next few years. The FMCG products would get outsourced from third party manufacturers,” said Ramesh Poddar, Vice Chairman and MD, Siyaram Silk Mills.
Emulating rival Raymonds, which already has a range of FMCG products under its Park Avenue brand, Siyaram does not plan to launch a new brand to differentiate itself in the new category.
“We intend increasing the number of Siyaram shops from 100 to 300 in the next two years. This will help us enhance the reach of the new products which will be under the Siyaram brand,” added Poddar.
Siyaram already has male-oriented accessories such as ties and belts under its brand. The new FMCG products would be an extension of the same.
Meanwhile, NRIs and expats living in West Asia can ‘come home to Siyaram’ as the fabric brand plans to set up outlets in the region through the franchisee route.
Poddar said, “We are looking at setting up shops under the Siyaram brand by appointing new franchises in West Asia. Today, the fabric brand of Siyaram has enough brand equity to be taken to new markets where there is brand recall. We are planning to set up shops in places such as Dubai, Muscat and Doha in West Asia.”
With an export turnover of Rs 50 crore, the company takes its fabrics to Europe and the Gulf countries. However, in Europe, Siyaram supplies its fabric to other retailers and manufacturers, while in West Asia the brand is present in certain multi-brand outlets.
Today, SSM has a sales turnover of Rs 900 crore, of which Rs 130 crore comes from its garment brands (such as Oxemberg, MSD and J Hamstead) while the balance is from the Siyaram fabric brand.
With growth slowing down in the domestic market, especially in the readymade category, the textile company has decided to consolidate its portfolio. “Price fluctuations have been confusing for the consumer. In our case, we are growing less this year at 15 per cent compared to 24 per cent last year with our readymade brands such as Oxemberg and J Hamstead,” he said.